talk money week

Talk Money Week | The Importance of Financial Stability

The world of finance, economy and money is incredibly important to our company. Talk Money Week is an ideal time to discuss these important topics. However, we often discuss these topics, as well as topics that are related to them e.g. cryptocurrency. In fact, we accept several cryptocurrencies as forms of payment on our gift websites.

What is Talk Money Week?

Talk Money Week aims to reduce the stigma associated with being open about money. Encouraging individuals to discuss finances with their family, friends, colleagues and communities is a focus for this. 

Talking openly about money can help to tackle money worries quickly, and is important for our overall health and personal relationships. The impact of the ongoing pandemic has made it more important than ever to start conversations about money to look after our financial wellbeing. After all, mental health issues can worsen easily with the added stress of financial uncertainty.

As part of Talk Money Week, we wanted to offer some insight into how one can improve their financial wellbeing and become financially stable.

1. Simply, do the math

Planning thoroughly so you understand that you can organise/eliminate expenses, save for future goals, spend wisely, prepare for emergencies and prioritise spending and saving. Through planning around these, you can calculate exactly what your expenses are and whether you are financially stable to cover them all.

2. Recognise how your finances might be affected by ‘lifestyle’ inflation

Most of the time, individuals will increase their spending once they have a pay rise to keep up with the average lifestyle of people in that same pay bracket. Even though it may be easy to keep up with bills and other compulsory payments at first, once you delve into a new lifestyle, expenses can increase exponentially.

3. Be aware of the difference between needs and wants

Unless you have an unlimited amount of money, it’s in your best interest to be mindful of the difference between needs and wants. Needs are things you have to have to survive: food, shelter, healthcare, transportation, a reasonable amount of clothing (many people include savings as a need). Additionally, wants are things you would like to have but don’t require for survival.

4. Start saving as soon as possible

Getting a head start on saving, no matter how small of a contribution you can make to your saving fund, can help greatly. Ultimately, the sooner you start, the better you’ll be once you hit your retirement age! This is because of the power of compounding—what Albert Einstein called the “eighth wonder of the world.” The longer earnings are reinvested, the greater the value of the investment, and the larger the earnings will (hypothetically) be. 

Note: utilising bitcoin (or other suitable cryptocurrencies) for your savings can greatly increase the effectiveness of your savings due to the risk surrounding inflation and fiat currency (US Dollars/GBP). Bitcoin, in particular, is not affected by inflation meaning your bitcoin will most likely be worth at least the same, or more than when you purchased it. 

5. Prepare an emergency fund

Similarly to savings, having a supply of cash to utilise when trouble comes is incredibly important. This fund should help you pay for unexpected costs such as maintenance issues, for example. The traditional version of an emergency fund is typically around 3-6 months worth of living expenses.

Overall, personal finance rules such as these can be excellent tools for achieving financial success. However, It’s important to consider the big picture and build habits that help you make better financial choices, leading to better financial health.

If you’d like to learn more about Talk Money Week, take a look at the website. Remember, there’s no need to be scared of being open about finance – #talkmoney.

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